Johnson & Johnson (JNJ) will unveil its first-quarter results tomorrow morning, and among the areas to watch is the company's immunology franchise.
New Brunswick, N.J.-based Johnson & Johnson expects its immunology franchise to continue to grow this year despite the company's expectations of a 10% to 15% market share erosion for Remicade, noted Tony Butler, an analyst with Guggenheim Securities, in an interview on Monday.
Remicade is a treatment for arthritis, ulcerative colitis and Crohn's Disease. Pfizer (PFE) launched Inflector, a biosimilar of Remicade, in November.
Besides Remicade, Johnson & Johnson's immunology franchise includes Stelara and Simponi.
Another area to watch, Butler said, is the diabetes drug Invokana, which has faced competition from Eli Lilly's (LLY) Jardiance. Importantly, however, a large cardiovascular outcome trial, billed Canvas, will read out at the
American Diabetes Association meeting in San Diego in June and a positive outcome "could place Invokana on even footing with Jardiance," he said.
The oncology franchise is also an area within Johnson & Johnson's pharmaceuticals unit to keep an eye on, Butler said. The franchise includes Darzalex , a treatment for multiple myeloma, and Imbruvica, a treatment for marginal zone lymphoma.
"Prescription trends for Darzalex reveal sequential growth of 22% in the quarter and likewise Imbruvica prescription trends appear up 13% sequentially, which illustrates accelerating growth versus the 6% growth (sequentially) in Q4 2016," Butler said.
Butler has forecast Johnson & Johnson to have revenue of $18.1 billion and adjusted earnings per share of $1.75 for the first quarter.
Shares of Johnson & Johnson were trading at $125.75 on Monday, up 0.6%. The stock is up 9% year-to-date.
Analysts polled by FactSet Research Systems estimate, on average, first-quarter revenue of $18.02 billion and adjusted EPS of $1.72.
In January, Johnson & Johnson said it will purchase Swiss biotech Actelion Ltd. for $30 billion and plans to spin out the latter's research and development unit into a separate business. Johnson & Johnson said in March that the transaction remains on pace to close in the second quarter.